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Vanadi Coffee Bets $1.17 Billion on Bitcoin Despite Big Losses

Key Takeaways

  • ​Vanadi Coffee plans to invest up to €1billion in Bitcoin, despite only running six cafés and posting a €3.9 million loss last year;
  • The company now holds 54 Bitcoins and wants to use crypto as its main treasury asset;
  • Vanadi’s board can raise funds through new shares and debt, with fees going to intermediaries and board members.

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Vanadi Coffee Bets $1.17 Billion on Bitcoin Despite Big Losses

Vanadi Coffee, a small café chain with just six stores in Spain, is planning to invest up to €1 billion (about $1.17 billion) in Bitcoin BTC $107,383.82 .

This decision comes after Vanadi Coffee recorded a €3.9 million loss last year. Although revenue has grown, the business is still losing money and has very limited cash available.

These details come from filings on BME Growth, Spain’s stock market for smaller companies.

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The company wants to make Bitcoin the main asset in its treasury. A filing written in Spanish said Vanadi Coffee hopes this change will help reshape its business strategy.

Vanadi Coffee purchased 20 more Bitcoin in June, and by the end of the month, it held a total of 54 Bitcoins. These assets are being kept with Bit2Me, a local crypto platform registered with Spain’s central bank.

Additionally, Vanadi Coffee’s board can issue convertible debt and new shares, a strategy similar to one used by Strategy’s Michael Saylor.

The new plan gives the board the ability to increase the company’s capital by up to 50%. It also allows them to skip offering part of the new shares to existing shareholders, which means current investors could see their ownership reduced.

Additionally, up to 5% of any funds raised can be allocated to fees for intermediaries, including board members.

Meanwhile, The Smarter Web Company secured $56.6 million in new funding after purchasing a large amount of Bitcoin. What is the funding for? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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